# News  /
												 Drought forces Panama Canal draught restrictions and pushes up rates

> El Niño and a protracted Panama drought have forced draft reductions at the canal, down from 50 feet at the start of the year, with the 43-foot limit taking effect May 28. Spot rates from Asia to the U.S. East Coast rose 14.7%, and the Freightos index shows China to USEC rates up 23% year to date.

- Date: 2019-05-14 · published 2019-05-14T12:00:00.000Z
- Category: logistics · region Panama · magnitude medium
- Page: https://feedsoft.ai/events/58987-news-drought-forces-panama-canal-draught-restrictions-and-pushes-up-rates
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

Higher East Coast container rates and reduced canal capacity increase the cost of moving feed and feed-ingredient shipments to U.S. importers, supporting freight-linked costs.

## Read by commodity

- OCEANFRT: bullish ▲

## Sources

- theloadstar.com: https://theloadstar.com/drought-forces-panama-canal-draught-restrictions-and-pushes-up-rates/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.